The acquisition of Imperial Blue marks a pivotal move for Tilaknagar Industries to diversify beyond its dominant brandy portfolio and gain scale in the whisky category
French spirits giant Pernod Ricard has agreed to sell its mass-market whisky brand Imperial Blue to Indian liquor firm Tilaknagar Industries for Rs 4,150 crore, as it sharpens its strategic focus on premium labels and more profitable segments in India, its second-largest market globally.
The transaction, subject to approval by the Competition Commission of India, will be a significant reshuffling in India’s alcohol industry. Pernod Ricard said the sale would be “immediately and meaningfully accretive” to its Indian unit’s operating margin and net sales growth. The deal is expected to close in the coming months.
For Tilaknagar Industries, the acquisition of Imperial Blue marks a pivotal move to diversify beyond its dominant brandy portfolio and gain scale in the whisky category, the largest segment in India’s IMFL (Indian-Made Foreign Liquor) market. Imperial Blue is currently the third-largest IMFL brand by volume.
“Having achieved leadership in the brandy segment, it is now time for us to broaden our portfolio and cater to India’s diverse and evolving consumer base,” said Tilaknagar Industries Chairman and Managing Director Amit Dahanukar. “This strategic acquisition allows us to enter the whisky category with one of the country’s most trusted and admired brands.”
The company added that the Imperial Blue acquisition will bolster its premiumisation strategy and expand its distribution network across the country. Alongside whisky, Tilaknagar also sells products such as Mansion House brandy, Blue Lagoon gin, and Madira Gold rum.
For Pernod Ricard, the sale is part of a broader global realignment aimed at prioritizing high-margin, high-growth brands amid a slowdown in the global spirits sector. The group said proceeds from the divestment will allow it to sharpen focus on core brands such as Royal Stag, Blenders Pride, Chivas Regal, Jameson, Absolut, and Ballantine’s.
“This transaction represents a win-win for all stakeholders involved, both at the global and local level,” said Alexandre Ricard, Chairman and CEO of Pernod Ricard. “It fuels our ambition to succeed even further in one of our top markets.”
Jean Touboul, CEO of Pernod Ricard India, added that the exit from Imperial Blue would help the company allocate resources more effectively towards its premium and global portfolio.
The transaction was advised by Goldman Sachs on the sell side. Deutsche Bank and Avendus Capital acted as financial advisors to Tilaknagar Industries, with Avendus also serving as the exclusive financing arranger. Crawford Bayley & Co. and W.S. Kane & Co. were the legal counsels, while Deloitte served as diligence advisor.
